protests. it just added fuel to the fire. >> all right, gentlemen. thank you both for a quick assessment of the day. as we head toward the close, about the lows for the session with the s&p and dow trading lower at this hour. that's the first hour of the "closing bell." i'll see you tomorrow. here's hour number two with maria and special guest host terry duffy. it is 4:00 on wall street. do you know where your money is? hi, everybody. welcome back to the "closing bell." i'm maria bartiromo today at cnbc world headquarters. a late day slide on wall street with the s&p 500 breaking below the key technical level of 1450. the s&p and nasdaq having their worst days in months. protests in spain today demanding parliament be dissolved and elections be held. we'll bring you the details on the ground in madrid coming up.

meanwhile, the market closing at the lows of the day. things intensifying at the end of the day amidst what's happening in spain as well as the week that we are ending, the third quarter. expectations that earnings are coming in after caterpillar warns and fedex a couple weeks ago. liz saunders says she's beginning to see things in this market that can be a good thing. she joins us now along with janua own rick santelli. what would you attribute this end of day selling to today? >> i think on some technical measures, the market certainly is a bit overbought. we've been saying we wouldn't be surprised to sew ed td to see al back. i think it shows maybe there were itchy traders looking to take some profits. clearly what's going on in spain brings the problems there back to light and we thought would

continue to provide short-term volatility from time to time. so far, i wouldn't get too terribly concerned about what we're seeing today. >> what about, mark, the third quarter? what are you expecting in terms of earnings? we'll be getting the numbers in about two weeks or so as the earnings parade begins. >> well, maria, the consensus, of course, is to see negative year-over-year earnings. we're likely to see management talking about obviously draping that in whatever context they can to put a positive spin on it and perhaps talk maybe more positively about the fourth quarter if only because in the last quarter the fx head winds to earnings have turned now to a tail wind given the fact the dollar has declined about 10% against the euro. maybe there will be positive surprises embedded in those comments. at the end of the day, what we're also seeing -- and of course caterpillar really exaggerated that. core capital goods orders have been melting downward.

i expect to hear more commentary relative to the fiscal cliff and the hesitancy on the part of the companies to make investments a and/or hire. >> rick, what were you seeing in chicago as we saw the market deteriorate in the final hour of trading today? >> well, i agree with the assessment that you and bill were debating with some guests. i know what's going on in madrid might not have a direct correlation with our markets, but on a day where we see things like tesla moving down because they're not selling enough vehicles or they can't ramp up production, coming on the heels of a disappointing vault. some of the good news has been about cars. some of the new technologies aren't grabbing on. what we realize when we watch madrid is what's going on there is about the economy. a lot of the good things that have happened in europe are just about the funding. not even addressing the economy. i think, yes, that's bubbling to the surface. i think there's one other issue.

as good as the housing data was today, and it was good, we're still in a 20-foot pool. we're not 18 feet under water, we're two feet under water. if you go back to 2002 or 2003, as i did today, the improvement looks minuscule by a wide comparison. >> good analysis there, rick. liz, when you're talking to clients are they risk verse? what are you hearing from them? what kinds of signs are you getting from some of the corporates out there in terms of the uncertainty? >> you guys talk about it all the time. it's often referred to as the most hated rally. it's not just a rally. it's the most hated bull market. we're almost four years into this. there's still so many nonbelievers. we don't find things much different. in terms of corporations, and i'm in major travel season right now so i've spoken the last couple weeks with many, many small business leaders around the country as well as larger

companies. again, you've been reporting on it. it's no different. the companies are saying that they're in essence in lockdown mode. it's election related. it's fiscal cliff related. they don't feel the impetus to do it. they're at a standstill right now. hopefully we have some clarity with the election. they're all willing to say, look, it doesn't almost matter what the playing field looks like, but we have no sense of it. they're willing to suit up under any circumstances. when they don't understand the competition, don't have the rules of the game, they're not going to suit up. >> exactly. we need more clarity. all right. thanks, everybody. we appreciate it. see you soon. we'll keep watching this market in the extended hours on the heels of this selloff happening at the end of the day. i want to stick with with the markets and welcome terry duffy to the program. trying something different today. terry is going to be my co-host for the hour of the "closing bell." very excited about that. good to see you. >> thank you. thank you for having me. >> thanks so much for joining

us. you're no stranger to the issues driving this market. i want to begin here in terms of the action we saw today. apparently we're getting this new debate in terms of is the fed stimulus actually going to boost growth? what's your take? >> there's a couple things. i traded markets for over 20 years. when markets get range bound, for lack of a better term, it takes just one little trigger and traders get trirg happy and do one thing or another. markets can not sit at a certain level for very long. all it takes is something like an austerity program in spain or other parts of the world. you go from 19 lower to 80 lower in a heartbeat. volumes have been down generally across the board globally on equities, futures, and every other marketplace. there's less participants in the marketplace. >> what's your take on where we are in the calendar in terms of the quarter ending? there is worry that earnings are going to come down.

what are you seeing from corporates today? >> i think corporates are sitting on cash. i just think there's so much uncertainty as it relates to the upcoming election. there's such a divergence of opinion between president obama and senator romney, where they want to take the country and what direction it would be. i think corporations are just holding back cash. i think individuals are holding back cash too. we're seeing less investment in the marketplace. if we're going see the fiscal cliff, which i'm sure we'll talk about throughout the day, but if we're going to see the bush tax cuts roll off, we're talking about dividends going up significantly. right now you cannot get any yield. everyone is chasing yield. you can't get it from the united states government. they'll pay you nothing. people are going say, wait a minute, now i have to pay 36% and i have risk in the marketplace. these are a lot of big issues. >> i know you meant governor romney. >> let me apologize. >> do you think we go to the

election and are in standstill mode until then? once we get the clarity of who's in the white house, what's your expectation? >> i do. i don't anticipate a lot. i know people are talking about that we'll see more in the early parts of november because of the different things with the defense department and where they're going to be at as far as cuts go. we'll get an indication what's going to happen. i think we'll have to wait until the election is over and done with and we'll get clarity for the future of the markets. >> i really like the fact you're looking at this whole dividend issue. we've been talking about the fiscal cliff a lot on this program. do you really think these guys are going to allow dif vidend taxes to go to 43%? >> they think hthis is a bunch f wealthy people trading the stock market. these are teachers' pension funds. all receiving some kind of yield with their investment into the marketplace. if you're going to take the cost

of that and go up significant, maybe less people will be involved. it's not good for the overall economy, in my opinion. >> as an executive at a firm that has raised the dividend, that's been paying back shareholders, even in a good performance, not that you need it, would that dictate your behavior? would you -- if dividend taxes went that high, would you reconsider? >> we've taken nothing off the table as far as how we're going return capital to shareholders, but we are committed to it. our shareholders like we're a high-paying dividend company. we were the first exchange in thetous go public in 2002. one of the things we were insistent upon is we're going to be a dividend-paying stock. i think people should be rewarded for owning your company. that's what we do at cme group. >> you had, i think, it was the most successful ipo of any exchange when cme first went public. acquisitions, are you done? do you need get bigger? what's now?

>> i don't know what happens now, but we've done a lot of big, strategic deals, as you know from the board of trade. we have presences not only in the u.s. but small stakes internationally. we're in a really good position while other people are trying to put those pieces of the puzzle together. >> we'll keep talking about all these issues. coming up, is research in motion finally moving in the right direction? the blackberry maker got unexpected good news today. does that make it more likely a buyer will emerge? that and more on this special tuesday edition of the the "closing bell." lessons learned. young people are cutting back on credit cards and boosting their savings. but is that actually a bad sign for our economy? and an official mess. will monday night's debacle force the nfl to end its labor dispute with referees? or will the league continue its hard line stance? it's all coming up on the "closing bell."

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research in motion ceo crowing a bit today. blackberry is actually adding users. the stock got a little bounce earlier today. take a look at $6.60 a share is

where r.i.m. is now. does this ray of light make them a more attractive takeover target by companies such as microsoft, among others? peter has an underperformed rating on r.i.m. also with us is terry duffy here with me onset. good to see you, peter. give us your take on r.i.m. today. >> kind of interesting. we expected them to lose 2 million users. he highlighted what caused the increase in subscribers. basically, they're losing subscribers in north america and gaining them in africa. while that sounds positive on the surface, we think it's negative in terms of numbers. it doesn't change our opinion at all. >> is everything riding on this new upcoming operating system? how important is that? >> it's a make or break for the company. if bb-10 is not a success, it would be very difficult to see

r.i.m. recover any kind of market share in any of the big developed markets. >> i want to show a chart of the stock. terry and i were just talking about what went on with r.i.m. in the last five years. i want to get your take on it. terry, look at this stock. this stock was all the way up to, what, $150 a share. >> it's pretty amazing where the stock was just a few short years ago and where it is today. you look at what the company's future is going to be, subscriptions up. when other companies are looking at a company such as r.i.m. and what they want to do with it, acquiaa acquire it, build it. they've got to be fairly attr t attractive for someone to acquire. >> if they have life beyond -- you use r.i.m.? you have an iphone. i had a blackberry for a long time. peter, what about that? is this a good take ovover in y

view? >> not at current prices. >> it's at six. what's a better price than six? >> i think three is not bad. >> is that where it's going? >> we have a $5 target. we think it could undershoot it if our numbers are too high. >> all right. we will leave it there. obviously you have an underperformer. you want to sell it, peter? >> i want to sell it. >> wow. i would be not a happy camper if i bought it in the 100s. thank you, peter. i want to talk about the other big story of the day at get your take on what's going on in europe. the pictures tell the whole story. the protesters in madrid getting pushed around. they are protesting the austerity measures proposed by parliament. does this get worse? >> you know, it's hard to predict, maria, if it's going to get worse. you would hope not. you want peace to be able to prevail in all parts of the world. at the same time -- >> something's got to give. >> something's got to give. >> they don't want to follow the

austerity, but they can't pay their bills. >> that's always a problem. you have to make a choice. fiscal responsibility at the same time i know they're talking about raising more revenue. there's a balance between both. they're going to have to do it if they're going to survive. i appreciate people's ability to assemble in all parts of the world. at the same time, what's most important is everybody is safe and doing it for the right reasons. >> i think it's extraordinary that spain is in a worse position than italy is. for a long time, people were talking about how italy 120 times gdp is the debt and mario monte has been able to create leadership and stability. spain has actually decelerated. >> they have. >> because of the real estate. >> that's a big part of it. at the same time, you know, we've had people not only in this country but other countries living on a bit of a bubble bp when those things pop, they hurt. i think that's what we're seeing. >> we'll keep watching that. that was one of the reasons we saw a market selloff today. that and the end of the quarter. we'll talk more on that with

terry duffy coming up. bullish on housing. our survey shows more than a quarter of americans are optimistic about their homes. then, is this a case of be careful what you wish for? new research showing 20 somethings are saving more and cutting back on credit card debt and spending. but when do good habits turn into a drag on the economy? we'll talk about it. later, where the nfl's referee lockout go after last night's officiating mess at the end of the seattle/green bay game? we'll speak with a man who sat at the negotiating table about why the nfl is not giving an inch here. back in a moment on "closing bell."

welcome back. is housing turning out to be a bright spot for this economy? according to the exclusive cnbc all-american survey, a quarter of americans think the value of their home will increase. in today's better than expected shiler data, are we finally in the midst of the housing turn around? eli broad joins me now. he's the owner of what is now kb home. he joins us from the clinton global initiative in new york to talk housing and more. i'm also joined by my special co-host this our, cme's terry duffy. good to see you, eli. >> good to be with you again. >> as the founder of kb home,

what do you say to these reports that thicngs are getting better? >> it's clear to me we're at the start of a real housing recovery. as you reported, 15 metropolitan areas saw in the last seven months a 5.9% increase in housing prices. we know consumer confidence is up. we know that interest rates are near an all-time low. i think people are going to recognize that buying a house now makes an awful lot of sense. they're not going to fear their home values are going to go down. so it's the start of a great recovery. >> terry? >> eli, i have a quick question for you. the market, i agree with you, has had a tremendous selloff. i like buying lows and selling highs. with interest rates being at an all-time low, if there's an uptick in rates, what does that do to the housing market? >> i don't think we're going to have an uptick in rates for the next two years. eventually it's going to happen.

that's going to dampen the market. but we've got a long way to go before we go to what i call high interest rates, 7, 8, or 9%. >> do you worry that what the fed has done is setting ourselves up for a real spike at some point? >> we could have a spike at some point, but look, our growth is, what, 1.5, 2%? i don't think i'd worry about that for the next two years. i can't predict what's going to happen with our inflation rate three to five years out. >> what's your sense of what the fed has been doing with all the stimulus? is it a positive? big debate on whether or not the stimulus, the qe forever, will actually boost -- move the needle in terms of boosting jobs. >> i don't think they had any choice. you needed a stimulus. the biggest risk we have is not inflation. it's deflation. we know how to manage inflation, but countries have not figured out how to manage deflation.

so we've got to make certain we have a growth rate going from 1.5, 2% to hopefully 3 or 4% in the next two years. >> this has sparked so much controversy. in fact, there are even bills out there, right, legislation pending. >> there are. there's a bill that passed in the house this summer, maria, to have the fed held accountable by the comptroller general. there are people that believe the fed is acting not in what it's normal course of business is, as an independent agency would be. it's worried about unemployment and other factors. hence, we're seeing qe-3. there's the other side of it. there is that opinion. >> right, right. what about that, eli? you've run two fortune 500 companies. what's your take on what's happening right now? so much cash on the sidelines, no hiring, uncertainty about the fiscal cliff and taxes. is this the lack of clarity that's keeping corporates from putting money to work? >> oh, there's a lot of uncertainty. people are worried about what's going to happen in europe. the jury is still out.

we hope we have a good outcome in europe. it's going to effect our economy positively or negatively. there's a lot of concern until people get confidence, until businesses get more confidence, they're not going to be investing the way they should be. hopefully, starting in 2013, we're going to get more confidence in the future of our economy and the future of europe. >> so you think we will in 2013? some people are expecting we'll see a recession in 2013 because of this fiscal cliff issue. >> oh, i think after the elections and so on we'll end up with some sort of a grand bargain. >> is that what you think, terry? >> i don't know if i completely agree, eli. i don't want to be disrespectful of eli, obviously. i don't know if it's going to be the case. it feels like the republican party is fairly dug in. feels like the administration is fairly dug in. hence, i think we're going to have a bit of an issue here. i think we're going to worry

about the fence bending first and foremost and go from there. yesterday you had a guest on, congressman. he made a comment that if the president does nothing, we all have to realize something. these cuts go away. as much as i respect eli, you know, there's a very short window of time if president obama is re-elect ed and he doe not negotiate. >> what about that, eli? how tough is it going to be? these guys can't agree on anything. we can't get anything done. why do you believe there will be a grand bargain? >> i think there will be a grand bargain because the elections are going to be over. people on both parties are going to realize they've got to end up with compromise and a grand bargain. i think be entirely different atmosphere come january and february. >> what's your sense in terms of those layoffs from the companies that are going to be forced to cut jobs because their federal spending is going away? are we going to have a lot of layoffs at the end of the year,

you think? >> we'll have some. i don't think it's going to be a vast number. frankly, i'm hopeful that we're going to start -- >> good to have you on the program. we appreciate your time today. >> good to be with you. >> we'll see you soon. eli broad joining us on housing and the economy. uh-oh. a new study shows 20-somethings are spending less money and saving. that's good news, right? but when does thrift turn into a liability for the my? later, last night's officiating mess at the seahawks/packers game is ratcheting up pressure to end the labor dispute with nfl referees. we'll talk to a man who's racked up hours at the bargaining table about what's next. stay with us. you have to dig a little. fidelity's etf market tracker shows you the big picture on how different asset classes are performing, and it lets you go in for a closer look at areas within a class or sector that may be bucking a larger trend.

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welcome back. i'm back with terry duff if y looking at the issues that really moved the market. spain, protesters continue on the floor. want to show you this video that's just coming in. the spain austerity protesters clash with police tonight. they're protesting the new austerity programs outside parliame parliament. the protesters tried to tear down barriers, blocking access

to the parliament in madrid. they were metal barriers that had been placed around the building to block access from every possible direction. as you can see in these pictures, you had the demonstrators protesting at what they're calling kidnapping of democracy. spain, the situation seems to be worsening here. just as we were getting these pictures in earlier, the stock market took another leg down. so we are looking at the happenings in europe as well as the uncertainties in the u.s. as the third quarter comes to a close this week. really having an impact on the stocks today with the dow finishing at the lows of the day, down more than 100 points at the close. i'm back with the president of cme group, terry duffy. you have europe, you have worries in the u.s. in terms of the fiscal cliff. we just heard eli broad saying they're going to get a grand bargain together in washington. europe is one problem. the other problem is the u.s. >> it is. it's a big problem, maria.

there's so much happening come the end of the year. all of the sudden we're going to have a grand bargain here in a lame duck session after the president is either re-elect or governor romney selected. all the sudden we expect to have this big grand plan happen. we haven't had a plan in three years. we can't even pass a budget. >> this administration has been unable to pass a budget. >> unable to pass a budget. continuing resolutions for three years. to say they're going to negotiate a grand plan in a short period of time, with all do respect to eli, i don't buy it. >> this is really important. was the president's budget so, you know, sort of spendthrift that he couldn't even get his own party to pass it? >> well, i mean, think about that. that's very important. in '08 and '09 when he had the administration, the house and the senate and still couldn't pass it. >> and still couldn't pass it, even though he had both parts of governments on his side. >> that's a very telling sign. no that we're seeing the republican majority in the house and seeing a senate that's going to be close either way,

whatever, nobody's going to have 60 votes in the senate like the president had in '08. he had 60 votes in the senate. he had a filibuster proof senate. >> how do you have to position cme ahead of this in 2013? what do you do as a business manager? >> we diversify. we hoped a clearing house in london. we filed for an exchange in europe, in london. we're diversifying our businesses. we're going to do foreign exchange over there. we own different pieces of business around the world. >> you're getting bigger. >> we're getting bigger, but you have to be diversified. >> real quick, money is mobile. are you going to move out of chicago? >> you know that. we've been through that path before. i went through that last year. >> all right. young americans are learning from the financial mistakes of their parents. new studies show that young adults are saving more, cutting back on credit card debt, and planning earlier for retirement. it's all good news, right? if we get a generation of savers, would that hurt the

consumer-driven economy? doug mcintyre says yes. once again, with me terry duffy here onset. good to have you both on the program. i guess i've got to start with you. you say saving money is a great thing and can start jobs. how do you figure? >> two reasons, maria. first, if the definition of insanity is doing the same thing over and expecting a different result, expecting that the thing that got us into trouble, consumptive excess on the side of the consumer, we're wrong. we need jobs, new jobs. in order for that to happen, people have to have mental time and space to be creative. when they're stuck on a consumptive treadmill, when they're stressed about their finances, they're unable to come up with those breakthrough ideas that will create profitable new products and services that will move the economy forward. >> all right.

i see where you're going with that. doug, you say money would actually hurt our -- saving money would hurt the consumer-driven economy, especially near the looming fiscal cliff. is it too late? what's your take? >> the case we've just had argued to us is a psychological case. it's a psychology 101 case. the problem with the economy right now is that older people feel pressure because they can't retire, and now younger people are saying, well, maybe i should save money when i retire 50 years from now. if mom and dad don't buy -- get a gift from junior this christmas and they don't buy one for junior, you are going to go into a recession. there's got to be consumer spending. if it's hard for the people in the elder brackets and the people in the younger brackets decide to put money into banks at like .5%, i don't see the advantage. >> terry? >> i agree with that.

there's nowhere to make money. you can't make money on treasuries. with the fiscal cliff coming -- >> the fed is punishing savers. >> absolutely. i think with the credit card people saving more, it doesn't surprise me a bit they're going down that path. i think there's a mixture of what they're both saying. i think we need to have a little adult supervision in the room when it comes to credit card spending. at the same time, if we put everything under the mattress, that will absolutely destroy this economy. >> because it's two-thirds of the economy. there are these unintended consequences of the fed stimulus. >> well, i'm not suggesting that people releverage to the point where they were five or six years ago, but just as an example, the german treasury came out with its study of consumer confidence this morning. what did they find snout jout? germans are spending money. why? because they can't get any yield. what are they putting their money into?

mostly real estate. real estate is relatively cheap there. mortgage rates are down. a generation or two, that's what people would have done. they're in the early stage of their lives. real estate is a bargain. you have good mortgage rates. buy real estate. it's likely to appreciate. that's not happening now. >> right. well, i don't know. there are some signs of housing market getting a little better. i think you make the right point. i agree. go ahead. sorry. >> maria, i was going to say i feel like we're missing the big picture here. i feel like we're at this incredible point of creative destruction, and some boundaries are an incredible power force towards getting people to think differently. i feel like we're having the same conversation over and over again. the point isn't spending. yes, we do need spending. what we need is conscious spending, mindful spending. if people are saving more diligently, the money they are spending will be much more tactical. just to use an example, we see this with corporations. when corporations have too much money on the balance sheet, what do they do? they make crazy acquisitions.

collectively as a global economy, that's what we've done. so what we're talking about is fiscal restraint. i think the end benefit can be the same thing we've seen with corporations who've tightened the belt and in many cases are in much better shape. >> apple computer is not a 26-year-old person. the problem here has absolutely nothing to do with whether corporations retain cash or not. it has to do with the perception of young people as to whether or not they think they ought to put money into something that yields -- i walked in front of a bank just now. it's like .5%. ten years from now, they're going to have next to nothing. you and i both know if mark zuckerberg had not maxed out his mastercard, facebook wouldn't exist. you have to have some ability of young people to spend money, in elssence to create a lifestyle. >> you both make great points. we appreciate your time. see you soon. you've seen the replays of

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made. brian shackman here with the story. >> this is when you know football is a big deal in this country right now. last night, the final play of the packers and seahawks game ended with a game-winning touchdown that almost no one thinks was a touchdown. it's clear that the defensive player pretty much had it, right? the referees were blamed for the calm. since they're replacements and the regulars are locked out over a labor issue, everyone in this country is chiming in. the nfl said a lot about a penalty that should have been called. all you need to know from them is this. they said the touchdown counts and the result of the game is final. even president obama chimed in on this one with his two cents or 140 characters, if he did write the tweet saying, quote, nfl fans on both sides of the aisle, hope the refs lockout is settled soon. that's the first bipartisan agreement in years. millions of fans, labor issue. wisconsin swing state. people need to realize this. this is about pensions and job

security. these are labor issues that we've seen, whether it's wisconsin or in chicago with the teachers union. so there's resonance, believe it or not, into politics. >> it's amazing. terry, did you watch the game? >> i did not watch the game. i saw the play. we're talking about a very small amount of money that understand is about $3 million annually that they're looking for. we're talking about one of the most profitable sports ever to be played. they make money literally from the first snap of the nfl season. the rest of the season is all gravy. >> we're talking billions. it's about pensions. they don't want to give pensions to part-time employees. they want to be able to add more crews, which means more competition and accountability with referees. if you don't do a good job, you're out. that's the problem. >> let's show it again. this is the play from last night. you can see one ref calling a touchdown while the other says, no. so will this latest blown call help the locked out regular refs get what they want in the labor negotiations? do you think so? >> i think they're going to get a settlement.

unless fans stop going to the games or sponsors pull, i think the nfl is going to hold steadfast. >> all right. we'll leave it there. thank you so much, brian. let's bring in robert lansa, a guy who knows a thing or two about sports negotiations. good to see you, sir. thanks for joining us. does last night's blown call give the league reason to make a deal? >> i really don't think so. you go into these things knowing you're negotiating in a fish bowl. so these types of things may or may not happen. i think it may get things done a little more quickly. ultimately, these long-term issues, which were just pointed out a moment ago, will be settled, and there will be the refs coming back in hopefully soon. no guarantees. >> this is amazing. the nfl has really become hard line when it comes to negotiations. do they maintain that stance no matter how bad this looks for the league? >> i'm not sure there's a termination. you have guys who are part-time

employees who are getting paid more than a lot of full-time employees. they've been offered a 7% increase in salary. so i'm not sure how bad it makes it look. the integrity of the game, if you're talking about we really have lost something here where these blown calls look so bad for everybody, but long term these issues will resolve themselves. >> so do you think it continues to erode? is it going to erode audience levels? are you going to see fans get angry? >> if it erodes audience levels, i think it makes a difference. folks are going to come to the table. at this point, it hasn't reached that level yet. >> the regular refs are battling with the league over whether they get a pension or a 401(k). can they afford to wait this out as long as it takes? >> i think both sides can afford to wait it out. solidarity is the number one thing in labor negotiations. on the one hand, you have employees who are well paid, who are getting significant

benefits. they have different jobs. you have an outstanding trial lawyer who is a referee. you have teachers. people from all walks of life making money. >> are they working enough? it's the most profitable of all sports leagues. i guess that's why it's on our radar. even after last year's lockout of players, fans came back. is that their leverage against the referees? >> you nailed it. you have a lot of people with a lot of money. >> all right. we'll leave it there. isn't that always the answer? good to see you, sir. thanks for joining us today. >> thank you. bye-bye. >> terry, before we end this hour, i've got to talk to you about what's going on in terms of high-speed, high-frequency trading. some of these upsets that we've seen in the market. you know technology better than most. what do you think is going on? >> i was listening to somebody on your show the other day. they said what's the difference between a nanosecond and a second? so should we slow the machines down to a second, put throttles

on them and go to a second? i would reverse that comment and say, what is the difference between a nanosecond and a second? most investors who are participating in the market are looking for exposure to that product for a prolonged period of time. they're not looking for exposure for a nanosecond or a second or five seconds or ten. this is about capital formation. these are about pension funds looking to get exposure to the marketplace. they don't care about five seconds. high frequency traders, especially in this moment of low liquidity, are performing a function of liquidity. i shudder to think if they were not there, where would the markets be right now versus where they're at today? i actually believe they've had an inherent value into the marketplace today. what's most important today about hfts is to make sure the markets are credible and policed properly. that's what we do at the cme group, the new york stock exchange. we all make sure the markets are credible no matter how fast or slow they are. >> do you worry if you take a

portion after that market out, you're impactingly kwidty? >> you're hugely impact iing liquidity. i want the best possible price in the deepest part of liquidity. if i take these people out of the equation, the bid offer widens, the cost goes up, i pass it on to the consumer. the same thing happen when is you trade stocks. companies can't hire more people. there's a big trickle down event here. >> are they getting ahead of other investors? >> i don't believe that's the case. speed is speed, maria. investors are not looking for speed. investors are look for exposure to a market. they're not trying to capture the bid auroffer. they're trying to get in ant a fair price. they're getting a very, very fair price in a deep liquid market. >> what a terrific insight. thank you for that. terry, you've been terrific as a guest host. >> i'm not going to quit my day job, i'll tell you that.

i joined this very much. >> i enjoyed having you. i hope our audience did as well. come back soon. >> i will. thank you. >> we will see you soon. i'd also like to mention the cme group is cospon ring a new live streaming online show on cnbc.com called "futures now." it begins october 2nd. new housing numbers could move the markets earlier tomorrow morning. what will move your money? our trio of stock watchers will tell you how they're playing that. later, my observation on what's driving younger people to spend less and save more. back in a moment. stay with us. now, that's what i call a test drive. silverado! the most dependable, longest lasting, full-size pickups on the road. so, what do you think? [ engine revs ] i'll take it. [ male announcer ] it's chevy truck month. now during chevy truck month,

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welcome back. 30 seconds on the clochblg our next guest will tell us what else they think will move the markets tomorrow. scott colver and david gariff. chris, we begin with you. what are you watching tomorrow? >> two things. head to germany first and foremost. first is going to be the consumer price index. might really start to grow

increasingly uncomfortable with the ecb's new bond buying program. then will be followed up by a ten-year bond action out of germany. interestingly, since the ecb enacted this program, the bid ratio has gone down, which shows less demand for german bundes out there. lastly, will be watching the crude inventories. >> we'll watch that. scott, you're up. 30 seconds on the clock. what's moving my money tomorrow? >> we have more housing numbers coming out tomorrow. we've got new home sales being announced. we've got mortgage applications. i think those could be -- could have upward pressure on the market. downward pressure would still come out of europe. spain and italy going back to the market for more money, as well as possibly more preannouncements. we've got three days left. market feels a little heavy. >> so you want to be selling it? >> yes. >> david, over to you, 30 seconds on the clock. what do you want to look at tomorrow? >> we're keepi ining an eye on

levels. spain has narrowed from 500 to 350. germany from the low 60 toss the low 40s. any material increase in those levels could sign a potential pause in this relief rally. we love -- put options with low vol right now. >> thanks so much we appreciate it. my thoughts on one of the unintended consequences of an easy fed policy is next. back in a moment. want to try to crack it? yeah, that's the way to do it! now we need a little bit more...

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tomorrow, a double dose. finally today, my observation on savers versus spenders. it is good news, as we spoke about earlier, that we are seeing a generational shift happening on the heels of the financial cry sisisis. younger people are spending less. the unintended consequences of all of the free money and stimulus from the federal reserve. these young savers are being hurt by artificially low interest rates. i've always been a big saver.

my mother drilled into me the dangers of leaving yourself vulnerable if life throws you a curveball like losing your job or god forbid an illness. i have always been one to save first and spend later. no doubt about it. that's who i am. today's youngsters have learned from their parents to do the same after witnessing job cuts and foreclosed homes firsthand. as the fed keeps pumping money to save the economic recovery and makes these promises to keep rates at rock bottom levels until at least 2015, those people are losing money, just by keeping it in rock bottom yielding savings accounts. for a long time, it was assumed that primarily older people were being hurt the most. they, of course, are inclined to take less risk and invest in fixed income products. so it's interesting that those being hurt today by the fed are bookended by the youngest of adults. you have also to wonder what happens to our economy if an entire generation is conditioned to be aggressive savers. everything is geared for spending, as it represents 2/3 of economic growth in this country. so to that end, these artificially low rates might

make young people less likely to keep saving long-term. that may be a good thing eventually for our economy, think about how unfair that is. bottom line, so much the fed has done has punished the folks doing the right thing, and bailed out those who were reckless. so many 20-somethings are learning that lesson right now the hard way. it's a terrible message to send. tomorrow on cnbc, don't miss a rare interview with twitter ceo dick costolo. tweet your questions today using #asktwitter. his answers will air tomorrow on cnbc and cnbc.com. take a look at the day on wall street. it was a tough day today. we had the protesting happening in spain. we had worries about earnings for the third quarter because the quarter ends this week. and it all relates in a triple digit loss for the dow industrials. nasdaq gave up 43 points and the s&p 500 down 15. that will do it for me on the "closing bell." i hope you'll follow me on twitter and on google plus. stay right there because "fast money" is up next.